Print Share Falling poverty and rising income inequality in Nigeria Official poverty and unemployment statistics for Nigeria can make bleak reading, even when compared with similar data from less wealthy countries in Sub-Saharan Africa.
This work finds that countries where income inequality is decreasing grow faster than those with rising inequality. The single biggest impact on growth is the widening gap between the lower middle class and poor households compared to the rest of society. Education is the key: In Italy, the United Kingdom and the United States, the cumulative growth rate would have been six to nine percentage points higher had income disparities not widened, but also in Sweden, Finland and Norway, although from low levels.
The paper finds new evidence that the main mechanism through which inequality affects growth is by undermining education opportunities for children from poor socio-economic backgrounds, lowering social mobility and hampering skills development.
People whose parents have low levels of education see their educational outcomes deteriorate as income inequality rises. By contrast, there is little or no effect on people with middle or high levels of parental educational background.
The impact of inequality on growth stems from the gap between the bottom 40 percent with the rest of society, not just the poorest 10 percent. Anti-poverty programmes will not be enough, says the OECD. Cash transfers and increasing access to public services, such as high-quality education, training and healthcare, are an essential social investment to create greater equality of opportunities in the long run.
The paper also finds no evidence that redistributive policies, such as taxes and social benefits, harm economic growth, provided these policies are well designed, targeted and implemented.Nigeria’s persistent poverty levels amid economic growth (Figure 1) confound a common theory that poverty reduction and economic growth are positively related (Balakrishnan, Steinberg, & Syed, ; de Janvry & Sadoulet, ; Chen & Ravallion, ).
ANALYSIS OF INCOME INEQUALITY IN NIGERIAN AGRICULTURAL ECONOMY: A CASE STUDY OF EKITI STATE. abAyinde O. E.; aMuchie M.; when economic growth increases, the incidence of poverty also increases and this has a decline effect on Nigeria Income inequality.
ACGS/MPAMS Discussion Paper No.3 Economic Commission for Africa Growth, Inequality and Poverty in Nigeria Professor Ben E. Aigbokhan Department of Economics.
Nov 06, · Poverty, Inequality, and Growth Global poverty is decreasing, but billions of people still do not have the resources they need to survive and thrive. Economic growth can reduce poverty, but it can also drive inequality that generates social and economic problems. 09/12/ - Reducing income inequality would boost economic growth, according to new OECD analysis.
This work finds that countries where income inequality is decreasing grow faster than those with rising inequality. The single biggest impact on growth . This entry is concerned with extreme poverty. The World Bank is the main source for global information on extreme poverty today and it sets the International Poverty Line.
The poverty line was revised in —since then, a person is considered to be in extreme poverty if they live on less than international dollars (int.-$) per day.